// Sales at Kering plunge almost 44% in the second quarter due to the Covid-19 pandemic
// Operating margins at the group fell to 17.7%
Kering has posted sales plunge of 43.7 per cent in the second quarter due to the coronavirus pandemic, adding it could not provide a forecast for the second half of the year despite an encouraging recovery in Asia.
The Gucci parent company’s revenue was better than analyst expectations, with those at UBS citing estimates for a 46 per cent fall.
Kering said in a statement that it did not have enough visibility to predict revenue or profit for the rest of the year, while chief financial officer Jean-Marc Duplaix told reporters it would continue to suffer for some time yet due to the lack of global tourism.
“The loss in revenue experienced in the first six months of the year should not be offset in the second half,” the luxury retail group said.
Sales at Kering’s top brand Gucci in the April to June period declined by 45 per cent on a like-for-like basis, which strips out the impact of currency swings and acquisitions.
Yves Saint Laurent suffered an even bigger fall of 48 per cent although Bottega Veneta contained the drop in revenue to only 24.4 per cent.